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What Is a Money Market Fund?

By Motley Fool Staff – Updated Nov 15, 2024 at 9:20AM

Key Points

  • Money market funds invest in low-risk, short-term securities like U.S. Treasury bonds.
  • Types of money market funds include prime, municipal, and government, all considered safe.
  • Benefits of money market funds include stability and liquidity but offer lower returns.

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